Granite Construction Incorporated (GVA)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,977,110 | 6,602,500 | 6,066,260 | 7,107,650 | 6,891,540 |
| Total current assets | US$ in thousands | 1,643,450 | 1,347,300 | 1,827,400 | 1,455,250 | 1,376,940 |
| Total current liabilities | US$ in thousands | 1,029,880 | 797,594 | 1,069,320 | 943,256 | 842,056 |
| Working capital turnover | 11.37 | 12.01 | 8.00 | 13.88 | 12.88 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,977,110K ÷ ($1,643,450K – $1,029,880K)
= 11.37
Granite Construction Inc.'s working capital turnover has exhibited fluctuations over the past five years. The ratio was 5.72 in 2023, higher than the previous year but lower compared to 2018 and 2019. This suggests that the company generated $5.72 in revenue for every dollar of working capital in 2023.
In 2021, the working capital turnover was 3.97, indicating a decrease in efficiency compared to the previous years. However, there was a significant improvement in 2020 with a ratio of 6.96, indicating that the company generated more revenue per dollar of working capital. In 2019, the ratio was 6.44, showing consistency with the prior year.
The fluctuations in working capital turnover may indicate changes in the company's liquidity and efficiency in managing its working capital. It is essential for Granite Construction Inc. to monitor and improve its working capital turnover to ensure optimal utilization of its resources.
Peer comparison
Dec 31, 2023